Trump launches investigations: Is a new trade war coming?
Malaysia Morning Wrap | Trump Pauses Tariffs for 75 Countries, Hikes China's to 125%
Good morning mooers! Here are things you need to know about today's market:
U.S. stocks Surge as Trump Announces 90-Day Tariff Pause.
Malaysian market Tumbles as Trade Tensions Escalate.
Malaysia to Host Chinese President Xi Jinping for State Visit.
Malaysian Exporters Pause US Shipments Due to New Tariffs.
US Tariffs Could Boost Market Share for Malaysia, Moody's Reports.
Stocks to watch: AXIATA, GASMSIA and etc.
- Moomoo News MY
Wall Street Summary
US stock markets experienced their largest single-day gains in years following President Trump's announcement of a 90-day pause on most foreign import tariffs. Before this pause, Malaysia faced 24% tariffs.
The pause applies to over 75 countries but notably excludes China, for which tariffs were increased to 125%. In response, China announced it will increase its additional tariff on U.S. goods from 34% to 84%.
This rally reversed the recent market downturn triggered by Trump's initial broad tariff package. The Nasdaq Composite led with a 12.2% increase, while the S&P 500 and Dow Jones Industrial Average rose 9.5% and 7.9% respectively.
Technology and retail sectors experiencing particularly strong gains, which had previously faced supply chain concerns. Among the 'Mag 7' stocks, Tesla led a significant rally, gaining 22.7%. NVIDIA, Apple, Meta, Amazon, and Microsoft all saw increases of 10% or more. Data for Alphabet was not specified.
Bursa Market Insight
$FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ 1400.590 (-2.98%)
Bursa Malaysia experienced a significant downturn on Wednesday, with the FBM KLCI falling 2.98% to its lowest point in 21 months. Over 900 stocks in decline and only 224 advancing.
This marked the sixth consecutive day of decline, largely driven by escalating trade tensions between the United States and China. The benchmark index has lost 8.3% since the announcement of U.S. tariffs on April 2.
Chinese President Xi Jinping will make a state visit to Malaysia from April 15 to 17, government spokesperson Datuk Fahmi Fadzil announced. The Malaysian Cabinet views this visit as crucial for strengthening bilateral ties, especially in trade.
Some Malaysian exporters have temporarily halted shipments to the United States following the implementation of new tariffs on April 10. Affected sectors include furniture, textiles, and spare parts for electrical and electronic devices.
Exporters are awaiting clearer information on the financial implications of these tariffs. Semiconductor exports remain unaffected so far, while glove manufacturers continue shipments, potentially benefiting from lower tariff rates compared to competitors.
Moody's Ratings reports that while new US tariffs will negatively impact the Asia-Pacific region overall, some countries could see increased market share. Malaysia, India, and the Philippines, facing moderate tariff rates of 10-30%, may benefit from trade triangulation to serve the US market.
IPO Scanner
$CKI (5336.MY)$ announced on Wednesday that it is postponing its Bursa Malaysia IPO from April to June due to market volatility, while allowing investors to withdraw their applications and committing to issue a supplementary prospectus.
Stocks to Watch
$AXIATA (6888.MY)$ and Khazanah Nasional are exploring a potential sale of Edotco, inviting investment banks to submit proposals for the transaction.
$GASMSIA (5209.MY)$'s Serdang City Gate station has resumed operations, enhancing gas supply stability in the Klang Valley and reducing affected customers to 275.
$DAYANG (5141.MY)$ has been awarded two work orders from Petronas Carigali for the provision of accommodation workboat vessels.
$HIBISCS (5199.MY)$'s PM3 Commercial Arrangement Area production sharing contract offshore northeast Malaysia has received a 20-year extension.
$DPHARMA (7148.MY)$ has secured three additional government supply contracts valued at RM16.6 million from $PHARMA (7081.MY)$.
$WCT (9679.MY)$ shareholders have approved the proposed listing of Paradigm Real Estate Investment Trust on the Bursa Malaysia Main Market.
$VANTNRG (5218.MY)$ has won a RM40 million contract for maintenance, construction, and modification services for offshore facilities in Peninsular Malaysia.
$KIPREIT (5280.MY)$ is set to acquire four retail properties in Kuala Selangor and Kuantan, Pahang, for RM118 million.
$ABLEGLOB (7167.MY)$, with operations in Mexico, is exploring opportunities under the United States-Mexico-Canada Agreement to mitigate rising US trade barriers.
$PERDANA (7108.MY)$ has secured two contracts for the charter of anchor handling tug and supply vessels.
Today's Comics
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Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The Edge.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.Read more
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